Irvine, CA · Member since 2016 · 545 posts · 614 votes
7y
@Iram Vimawala I see a few 4 bedrooms in the mid-to-high $300's, and a couple in the mid $400k range a little further away from you, best case scenario that additional 5th bedroom you have shouldn't cost a buyer more than an additional $100k which means you should be priced in the high $400's best case scenario if I were buying. I would go with one of the following:
1) Counter the $435k offer if it's your highest offer received, they offered $85k less than list, see where the middle ground is at with Zero incentives to the buyer, It may be Mid to high $400's
2) If there are no buyers where you can come out of this with an after tax profit, flip it into a Rental, It's a very nice looking property and you should be able to Refi out of the Hard Money loan without any additional out of pocket as long as you don't hold it too long, the Hard money adds up quickly.
3) If you really think the property is worth $520K, Spend the $425.00 dollars for an appraisal to get the actual value, If the appraisal comes in near your $520K you know the market doesn't have a buyer at this time of year, if the appraisal comes back in the Mid-to-High $400's you know you need to take less profit if you want to sell because if you go into escrow with a buyer at $520K all you'll be doing is sitting in escrow accumulating Hard money fees only to wait 30-45 days to fall out of escrow when the buyer says they aren't going to make up the difference between appraised value and sales price.
Not sure if you have partners or not, If not, I see rental rates in your area should come in above the mortgage so you won't get a $100k payday but you won't lose the property either.
By the way, Great job on the rehab, it looks great!
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
7y
@Iram Vimawala
Did a quick search on Zillow , looks like you purchased for $220k in January. It doesn’t look like there is anything on the market around your price and the same for sold prices . Lots of homes under $300k .
What did you spend on rehab costs ? The house does look very nice but I don’t see anything around the area to support the price .
I have pretty much dropped the price as much as I could....
Does that mean you'll let the lender foreclose before you lower the price again? If so, I would recommend just crossing your fingers and waiting to see what happens...
Out of curiosity, what feedback have you gotten from the agents who have shown the house? What did they love? What did they hate? What did they think of the price? Why weren't their buyer's interested?
All that said, I would go back to my advice above: You likely either need to lower the price and/or find a better agent. How did you find your agent?
I have gotten two very low offers for 380 435?rejected both ! The first floor they love but some want a master upstairs but the main problem is that the floor in the basement is a little uneven and the height is 6’8 what should I do I have flooring installed ! Should I remove and even the floors again
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
@Iram Vimawala how much of your 2700 SF is on the lower level with a 6'-8" ceiling height? Also did you pull permits for finishingbyhe basement? I thought it was fairly standard the need for 7' ceiling height and by code. If your house hasn't a good amount of that 2700 SF below grade, it does not really stack up to a 2700 SF comp with above grade SF. Sounds like the house may be a $400-425k house?
Irvine, CA · Member since 2016 · 545 posts · 614 votes
7y
@Iram Vimawala I see a few 4 bedrooms in the mid-to-high $300's, and a couple in the mid $400k range a little further away from you, best case scenario that additional 5th bedroom you have shouldn't cost a buyer more than an additional $100k which means you should be priced in the high $400's best case scenario if I were buying. I would go with one of the following:
1) Counter the $435k offer if it's your highest offer received, they offered $85k less than list, see where the middle ground is at with Zero incentives to the buyer, It may be Mid to high $400's
2) If there are no buyers where you can come out of this with an after tax profit, flip it into a Rental, It's a very nice looking property and you should be able to Refi out of the Hard Money loan without any additional out of pocket as long as you don't hold it too long, the Hard money adds up quickly.
3) If you really think the property is worth $520K, Spend the $425.00 dollars for an appraisal to get the actual value, If the appraisal comes in near your $520K you know the market doesn't have a buyer at this time of year, if the appraisal comes back in the Mid-to-High $400's you know you need to take less profit if you want to sell because if you go into escrow with a buyer at $520K all you'll be doing is sitting in escrow accumulating Hard money fees only to wait 30-45 days to fall out of escrow when the buyer says they aren't going to make up the difference between appraised value and sales price.
Not sure if you have partners or not, If not, I see rental rates in your area should come in above the mortgage so you won't get a $100k payday but you won't lose the property either.
By the way, Great job on the rehab, it looks great!
Did you paint or replace the brick? Google maps shows a different color brick. And if you painted, did you have someone individually paint bricks to get that look? I don't think I've ever seen that!
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
the two things that will get in the way of selling is
A) price too high and
B) agent who isn't aggressively marketing.
If it were me, I would counter your highers offer. Split the difference and see what they say. The market is only going top weaken as time goes on and interest rates rise.
Also, your agent needs to be doing open houses, agent tours, etc etc.
I would be very careful about doing a cash out refi and renting... check and double check your numbers and take as little cash out as possible.
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
7y
"fropiped the price" some more. The market is horrible here. I have fropiped the price of my house in Chicago 150K and nothing for a year. But Chicago is in worse shape than Evanston.
Or turn it into a rental. Hard to say. Post the house info and people will give opinions. What do potential buyers say after showings? Are you getting lowballs or nothing?
Real Estate Broker · 1732 W Hubbard St #2C Chicago, IL 60622 · Member since 2018 · 34 posts · 13 votes
7y
@Iram Vimawala I'm an interior designer and had worked on several flips before getting my RE license.
I looked at the MLS listing and then came up with an ARV target of $415K and a rehab budget of $158K (design, labor, systems, materials, finishes) for your property.
How did you arrive at the $190K rehab budget and how did you have it allocated?
FWIW... I don't think having new photos taken and staging it is going to help all that much. Neither will tearing out the basement floor and redoing it. Take the $435K and resolve to do better with the next flip.
Chicago, IL · Member since 2014 · 710 posts · 200 votes
7y
Rehab looks good except for Kitchen Island and exterior roof line. Should have dormed the front roof for curb appeal. The kitchen island glass is terrible I’d swap out the doors